Treasurer Paying Overseas Suppliers: Stablecoin FX Through an OTC Desk Without IOF on Every Remittance in Brazil
Why the Crown FX OTC desk does not charge FX IOF on a treasury's remittances to overseas suppliers, and how to validate the framework.
For a treasury, no longer paying IOF on each remittance to overseas suppliers follows from a legal trait of Crown FX: stablecoins are traded, not foreign currency, and there is no effective conversion of currencies. Without an exchange operation in the strict sense, the FX IOF has no triggering event.
Non-incidence, not exemption. Crown treats the matter as non-incidence. Traditional FX IOF reaches up to 3.5% and accumulates over recurring remittances.
What the treasury should record
- The spread of each operation, visible in the quote.
- The documented ceiling of US$ 100,000 per payment operation.
- The opinion of the company’s tax adviser, since Crown provides no tax, legal or financial advice.
See paying Brazilian suppliers with a stablecoin, traditional FX versus stablecoin FX and providers connecting dollar stablecoins to real payment rails.